Puma Maintains 2025 Outlook Despite First Quarter Profit Margin Dip
Puma SE, the German sportswear giant, has reported a slight increase in sales for the first quarter of 2025, with revenues edging up by 0.1% to €2.07 billion, surpassing analyst expectations. However, the company faced a significant 3.6% decline in its wholesale business, particularly in the US and China, highlighting the challenges in these key markets. Despite the mixed results, Puma's shares surged by more than 7% on the Frankfurt Stock Exchange, as investors welcomed the better-than-expected sales figures and the reaffirmation of the company's annual outlook.
The company's direct-to-consumer (DTC) segment showed robust growth, increasing by 12% to €546.5 million, driven by a strong performance in e-commerce and owned retail stores. This growth underscores Puma's successful strategy to enhance its digital and physical retail presence, with the DTC share of total sales rising to 26.3% from 23.5% in the same quarter last year. The footwear category, particularly in running, basketball, and sportstyle, led the sales increase, while apparel and accessories saw declines.
Regionally, Puma experienced varied performance across its markets. The Europe, Middle East, and Africa (EMEA) region saw a 5.1% increase in sales, buoyed by strong growth in Eastern Europe, the Middle East, and Africa. Conversely, the Americas and Asia/Pacific regions faced declines, with sales dropping by 2.7% and 4.7%, respectively, due to softer demand in North America and Greater China. These regional disparities reflect the ongoing global economic uncertainties and shifting consumer preferences.
Looking ahead, Puma remains optimistic about its 2025 prospects, maintaining its forecast for low to mid-single-digit revenue growth and an operating result between €520 million and €600 million. The company's strategic initiatives, including the launch of its 'Go Wild' brand campaign and a sustainability milestone of producing 90% of its products with recycled materials, demonstrate its commitment to innovation and environmental responsibility. With the appointment of Arthur Hoeld, former Adidas sales chief, as the new CEO starting July 1, Puma is poised to navigate the challenges and opportunities of the global sportswear market.
